The USD/JPY broke above the previous 2018 highs at 113.43 and hit a new peak of 113.64 before consolidating its gains. What’s next?
The Technical Confluences Indicator shows that the pair still needs to make a convincing move above 113.43 where we see the convergence of the Bollinger Band 4h-Upper, the Simple Moving Average 5-15m, the BB one-day Upper, the Pivot Point one-month Resistance 2, and the BB 15m-Lower.
113.68 is the next hurdle where we see the meeting point of the 1h-high, the 4h-high, and the Fibonacci 161.8% one-month.
The next target is already at the much higher ground: 114.70. This is the confluence of the 52-week high, the PP one-day R3, and the PP one-month R3.
Looking down, support awaits at 113.15 where we see the Fibonacci 38.2% one-day, the SMA 200-15m, and the PP one-week Resistance 1 converge.
The next support line is 112.63 which is the congestion of the Fibonacci 23.6% one-week, the SMA 10-one-day, the one-day low, and the BB 4h-Lower.
Here is how it looks on the tool:
The Confluence Detector finds exciting opportunities using Technical Confluences. The TC is a tool to locate and point out those price levels where there is a congestion of indicators, moving averages, Fibonacci levels, Pivot Points, etc. Knowing where these congestion points are located is very useful for the trader, and can be used as a basis for different strategies.
This tool assigns a certain amount of “weight” to each indicator, and this “weight” can influence adjacents price levels. These weightings mean that one price level without any indicator or moving average but under the influence of two “strongly weighted” levels accumulate more resistance than their neighbors. In these cases, the tool signals resistance in apparently empty areas.
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